Strong demand for UPS as industries in Europe are losing €150bn due to power issues

Apr 21, 2015 | UPS & Standby Power

End-user industries are increasingly investing in industrial uninterruptible power supply (UPS) systems to minimise productivity losses and threats to plant safety due to power interruption. Annual productivity losses on account of power quality issues are costing end user industries in Europe €150bn and those in the US $188bn. The need for industrial UPS systems in these regions is on the rise. By 2018, the mature US and European markets will contribute to 45% of market revenues, while Asia-Pacific will hold 26% of the revenue share.
New analysis from Frost & Sullivan, Global Industrial UPS Market, finds that the market earned revenues of $1.13bn in 2014 and estimates this to reach $1.38 billion in 2018. The study covers single and three phase industrial UPS systems.
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“The growth in niche industrial applications is pushing end users to employ high-end industrial UPS systems,” said Frost & Sullivan Energy & Environmental senior industry analyst Gautham Gnanajothi. “As niche segments have specific requirements, customised and specialised UPS systems will account for a large proportion of investments made in this space.”
However, the low replacement rate of industrial UPS systems, which are built to deal with dust and extreme conditions, will decrease market revenues. As the average life expectancy of industrial-grade UPS systems is around 20 to 30 years, nearly twice the lifetime of a standard commercial UPS system, replacement demand will remain low globally.
Further, the limited scope for product or technology innovation due to the maturity of UPS technology will hamper market progress. Nevertheless, with industrial end users showing interest in modular UPS systems, developing such products will catalyse demand.
“Manufacturers need to introduce energy-efficient UPS systems with additional features,” pointed out Gnanajothi. “They should also enhance their customisation capabilities to strengthen their appeal to customers in various market segments.”